I've been primarily in cash for the past month while the market has tanked. The emerging markets have been getting destroyed, also, in the past month. Even worse than the US markets. If the US is in a recession, China is f***ed because nobody is going to buy their exports. I'd look to short etfs or to buy stocks that perform well in interest rate-declining environments, because the fed will reduce rates a few more times.
Guys, if you think a democratic president is good for the market, you're insane. Repealing tax cuts and raising taxes is exactly what is NOT needed right now. Hussein Ubama is so clueless about economic policy it's not even funny - the guy is simply too inexperienced to try to right the ship.
Please explain to me how a tax increase is going to help today's market. I'm dying to find out the truth, friend.
Democrat: Bill Clinton was great for the economy. Republican: Presidents have very little to do with economy Republican: George Bush is great for economy
I'd like you to show me how dubya's tax cuts coupled with ginormous defecit spending were good for the economy. Please. I'm really interested considering that both you and I are bailing the stock market at the moment in anticipation of a recession.
I won't be holding my breath for that too happen. It never works. But I totally agree in principle. Balanced budget amendment anyone? Any thoughts on my earlier question deepblue? I am pretty sure you are vastly smarter than I am when it comes to this sort of thing, given your many posts on the subject.
Yeah right. No way real estate is good right now. Just because it tanks doesnt mean it's automatically cheap. There is tons of unsold inventory out there that is going to suppress the market, not to mention that people dont have the money to buy even if inventory was normal. And people arent rushing into commodities. I can't even get into them because I put most of my money in 401(k) and I dont have a commodities option. I need to save cash and invest in an ETF.
We will see, first Mitt has to win the GOP nomination. As for your other question, I would keep most of the money in cash (I am 80% cash right now), a lot of bond fund's yield aren't that great, you can get reasonable rate at money market short term anyway. This market can easily go down another 10%. The fed will cut rates again, which might cause USD to drop some more. So stay on the sidelines and be ready to jump in.
says the poster who continues to support the most fiscally liberal and irresponsible president this country has ever had. NO CRED!
The past few years' GDP gains speak for themselves. Arguing with you lefties who are blinded by your political frustrations is a fool's errand. I'm printing cash with my investments while you lefties sit around and moan and while like children.
The inventory of unsold homes is just going to get worse over the next 18 months when all of the remaining subprime mortgages reset and followed by foreclosures shortly thereafter. I suspect that this will be a tough year for the economy and the stock market. And if the the Fed does not keep inflation in check, stagflation is a real possibility; in which case, 2009 will be another bleak year.
You sir, obviously know what you are talking about. I, as an individual investor, love to see people panic. It is not there yet, I am still in the process of organizing my watch list. I wish more bad news will be thrown into the market.
